U.S. SEC, CFTC sue Goliath Ventures over alleged $400M crypto Ponzi scheme

U.S. SEC and CFTC have filed separate civil complaints against Goliath Ventures and founder Christopher Delgado over an alleged roughly $400 million crypto Ponzi scheme, Cointelegraph reported. The SEC alleged Goliath raised at least $425 million from more than 1,300 investors by saying the funds would be invested in cryptocurrency liquidity pools, but did not actually invest the money and instead used funds from new investors to pay returns promised to earlier investors. The agency also alleged Delgado personally diverted at least $51 million. According to the CFTC, Goliath took in at least $397 million from about 1,600 people while claiming it would generate profits through Bitcoin and Ethereum trading. The CFTC is seeking victim restitution, disgorgement, civil monetary penalties, and trading and registration bans. Delgado had previously pleaded guilty to wire fraud, conspiracy to commit wire fraud, and money laundering.